"Because it is a young currency, bitcoin has had various "teething" problems, and some of these have caused wild swings in value," writes Vollum. "As the software is refined, as more vendors start accepting bitcoin, and more users choose it for their transactions, these wild swings should damp out."

"On the other hand, it is entirely possible that some flaw in the system may come to light, rendering bitcoins completely worthless," he added. "In any event, it is wonderful to see new forms of free market money offering choices for saving and facilitating trade."